Classification

Question 1

What is property?

Answer 1

All things which are, or may be, the object of appropriation.
[Art. 414, CC]

Question 2

What cannot be considered as property?

Answer 2

Things cannot be considered as property when they are not susceptible of appropriation because of physical impossibility (i.e., sun and moon) or legal impossibility (i.e., live human body). [de Leon]

Question 3

What are the different basis of classification of Property?

Answer 3

1. based on mobility
2. based on ownership/rights-holder
3. based on consumability
4. based on susceptibility to substitution
5. hidden treasure
6. based on the constitution

Question 4

What are the classification of property based on mobility?

Answer 4

a. Real or Immovable Property

b. Personal or Movable

Question 5

What are the types of immovable property?

Answer 5

Immovables by nature

Immovables by incorporation

Immovables by destination

Question 6

What properties are considered immovables by nature?

Answer 6

cannot be moved from place to place; their intrinsic qualities have no utility except in a fixed place.

1. Land, buildings, roads, and constructions of all kinds adhered to the soil [415 (1)]
2. Mines, quarries, and slag dumps, while the matter thereof forms part of the bed, and waters either running or stagnant. [415 (8)]

Question 7

When is a Building treated as personal property?

Answer 7

Doctrine of Estoppel

Parties may by agreement (e.g. as a chattel mortgage) treat buildings as movables, effective only as to them, but void if rights of third persons are involved. It is based, partly, upon the principle of estoppel. [Tumalad v. Vicencio, G.R. No. L-30173 (1971); Evangelista v. Alto Surety, G.R. No. L-11139 (1958)]

Question 8

What properties are considered immovable by incorporation?

Answer 8

movables but are attached to an immovable in such a way as to be an integral part [Pars. 2, 3, & 7]

1. Trees and plants: only immovables when they are attached to the land or form an integral part of an immovable. Note: By special treatment of Act 1508 (Chattel Mortgage Law), growing crops may be subject of a Chattel Mortgage. For the purpose of attachment: growing crops are to be attached in the same manner as realty. [Sec. 7, Rule 59]
2. Everything attached to an immovable in a fixed manner, in such a way that it cannot be separated therefrom without breaking the material or deterioration of the object. Note: Whether attached by the owner himself or some other person
3. Fertilizer actually used on a piece of land

Question 9

What properties are considered immovables by destination?

Answer 9

essentially movables but by the purpose for which they have been placed in an immovable, partake of the nature of an immovable [Pars. 4, 5, 6 & 9]

1. Statutes, reliefs, paintings,
2. Machinery, receptacles, instruments or implements INTENDED by the OWNER of the tenement which tend directly to meet the needs of the said industry or works
3. Animal houses
4. Docks and structures which, though floating, are intended by their nature and object to remain at a fixed place on a river, lake, or coast (need not be placed by owner of land) [415 (9)]

Question 10

What are the requisites for statutes, reliefs, paintings to be considered immovables by destination?

Answer 10

[Arts 416, 417, CC]

a. Placed by the owner or by the tenant (as agent);
b. With intention of attaching them permanently even if adherence will not involve breakage or injury.
c. Where the improvement or ornaments placed by the lessee are not to pass to the owner at the expiration of the lease, they remain movables for chattel mortgage purposes. [Davao Sawmill v. Castillo, G.R. No. L-40411 (1935)]

Question 11

When does machinery etd. revert to to being immovables?

Answer 11

The moment they are separated, (from the immovable or from the industry or work in which they are utilized) they revert to being movables.

Question 12

What are the requisites for machinery, receptacle, instruments, or implements to be considered immovable by destination?

Answer 12

a. Must be machinery, instruments, or implements
receptacles,

b. Placed by the owner or the tenant (as agent);
c. The machine, receptacle, instrument, implement must also be essential to the business (tend directly to meet the needs of industry or work) in order to be considered realty. [Mindanao Bus Co. v City Assessor, G.R. No. L-17870 (1962)]

Question 13

Is machinery placed in a plant by a tenant not acting as agent of owner immobilized?

Answer 13

NO.

Machinery which is movable in its nature only becomes immobilized when placed in a plant by the owner of the property or plant, but not when so placed by a tenant, a usufructuary, or any person having only a temporary right, unless such person acted as the agent of the owner. [Davao Sawmill v. Castillo, G.R. No. L-40411 (1935)]

Question 14

What are the requisites for animal houses to be consiidered immovable by designation?

Answer 14

a. Placed by the owner or the tenant (as agent);
b. With the intention of permanent attachment;
c. Forming a permanent part of the immovable.

Question 15

What are the Categories of Movable properties?

Answer 15

1. Everything not included in Art. 415 (by exclusion);
2. All things that can be transported from one place to another without substantial injury to the immovable to which it is attached (by description) Unless expressly included in Art. 415 (Test by Exclusion is Superior)
3. Real property which by any special provision of law is considered as a movable
4. Forces of nature brought under the control of science (e.g. electricity, gas, heat, oxygen)
5. Obligations and actions which have for their object movables or demandable sums (i.e. any credit)
6. Shares of stock of agricultural, commercial and industrial entities, although they may have real estate (e.g. stock certificates of a corporation)

Question 16

What are the classification of property based on ownership / rights-holder?

Answer 16

a. public dominion

b. private ownership

Question 17

Are churches and other consecrated objects public? or private property?

Answer 17

Neither.

Churches and other consecrated objects are considered outside the commerce of man; they are considered neither public nor private property. (Tolentino)

Question 18

What are properties of public dominion?

Answer 18

Property of public dominion is outside the commerce of man. They cannot be the subject matter of private contracts, cannot be acquired by prescription and they are not subject to attachment and execution nor burdened with a voluntary easement.

Question 19

What is the difference between Public Dominion and Public Domain and Public Lands?

Answer 19

Public Dominion: Art. 420, CC

Public Domain: Used in Art XII, Section 2, 1987 Constitution

Public Lands: Public Land Act

Question 20

What are the classification of property of public dominion?

Answer 20

• administered by the state

- administered by municipal corporations

Question 21

What are properties of public domain administered by the state?

Answer 21

1. Those intended for PUBLIC USE. (roads, canals, rivers, torrents, ports and bridges constructed by the State, banks, shores, roadsteads, and others of similar character)
2. Those (w/o being for public use) and are intended for some PUBLIC SERCVICE: May be used only by authorized persons but exists for the benefit of all, e.g. fortresses, unleased mines and civil buildings.
3. Those for the development of the NATIONAL WEALTH. Includes natural resources such as minerals, coal, oil and forest.

Question 22

What is patrimonial property?

Answer 22

Owned by the State over which it has the same rights as private individuals in relation to their own property

Question 23

What it the purpose of patrimonial property?

Answer 23

• Enables the State to attain its economic ends
• Serves as a means for the State’s subsistence and preservation
• Enables the State to fulfill its primary mission

Question 24

Can patrimonial property be the subject of contracts?

Answer 24

YES.

Patrimonial Property is owned by the state and can be the subject of contracts.

Question 25

When is property of public dominion for public use converted to patrimonial property?

Answer 25

1. Property of public dominion, when no longer intended for public use or for public service, shall form part of the patrimonial property of the State [Art. 422, CC]
2. An express declaration by the State (either by the Congress or by the President, if the power was provided by law) that the property of public dominion has been converted into patrimonial property, even though it was classified as alienable or disposable. [Heirs of Malabanan v. Republic, G.R. No. 179987 (2009)]

Question 26

What are property of public domain administered by municipal corporations?

Answer 26

Property for public use, in the provinces, cities, and municipalities, consist of the provincial roads, city streets, municipal streets, the squares, fountains, public waters, promenades, and public works for public service paid for by said provinces, cities, or municipalities.

Question 27

What are the patrimonial property of municipal corporations?

Answer 27

a. All other property possessed by any of them (provinces, cities, and municipalities) [Art. 424 (2), CC]
b. The province or municipality, as a juridical entity, also possesses private property to answer for its economic necessities.
c. General Presumption: that land comes from the State upon the creation of the municipality. All lands in the possession of the municipality are properties of public dominion held in trust for the State’s inhabitants are subject to the control and supervision of the State.

Question 28

What is the general presumption re lands in the possession of the municipality?

Answer 28

General Presumption: that land comes from the State upon the creation of the municipality. All lands in the possession of the municipality are properties of public dominion held in trust for the State’s inhabitants are subject to the control and supervision of the State.

Question 29

What is the exception to the general presumption that lands possessed by municipalities are public dominion?

Answer 29

Exception: Properties acquired with their own funds in their private or corporate capacity over which the political subdivision has ownership and control. A municipal corporation must prove that they acquired the land with their own corporate funds. [Salas v. Jarencio,G.R. No. L-29788 (1972)]

Question 30

What is the classification of LGU properties according to the Local Government Code?

Answer 30

1. Property of LGU in its governmental character, which is broader than Art. 424, CC
2. Property of LGU in its proprietary character.

Question 31

Who can exercise private ownership?

Answer 31

• the state in its private capacity

- private persons

Question 32

What are the kinds or private ownership?

Answer 32

1. Patrimonial property - Property owned by the State and its political subdivisions in their private capacity; all property of the State not included in NCC 420 (on public dominion) [NCC 421-424]
2. Property belonging to private persons, either individually or collectively [Art. 425, CC]

Question 33

When is there conversion of Alienable Public Land held by a possesor?

Answer 33

(only patrimonial property)

Prescription

personally/through predecessors-in-interest, openly, continuously and exclusively – for 30 years is converted to private property by the mere lapse or completion of the period. The application for confirmation is a mere formality, because land had already been converted, giving rise to a registrable title. [Director of Lands v. IAC, G.R. No. 73002 (1986)]

Question 34

When is private land converted to property of public dominion and reclamation?

Answer 34

Through the gradual encroachment or erosion by the ebb and flow of the tide, private property may become public if the owner appears to have abandoned the land, and permitted it to be totally easten up by the sea so as to become part of the shore. The land having disappeared on account of the gradual erosion in case of natural expropriation, and having remained submerged until
they were
reclaimed by the government, they are public land. [Government v. Cabangis, G.R. No. L-28379 (1929)]

Question 35

What are the classification of property based on consumability?

Answer 35

Only applies to movable property, determined by nature [Art. 418, CC]

1. Consumable goods: movables which cannot be used in a manner appropriate to their nature without their being consumed.
2. Non-consumable goods: all those excluded in the first category

Question 36

What are the classification of property based on susceptibility to substitution?

Answer 36

Only applies to movables, determined by the intention of the parties.

1. Fungibles: things that, because of their nature or the will of the parties, are capable of being substituted by others of the same kind, not having a distinct individuality.
2. Non-fungibles: things that cannot be
   substituted for another; if the parties agreed that the same thing be returned, it is not fungible.

Question 37

What is hidden treasure?

Answer 37

Any hidden and unknown deposit of money, jewelry or other precious objects, the lawful ownership of which does not appear. [Art. 439, CC]

Question 38

What is the general rule re to whom the hidden treasure belongs to?

Answer 38

Hidden treasure belongs to the owner of the land, building, or other property on which it is found [Art. 438, CC]

Question 39

When is the finder of the hidden treasure entitled to 1/2?

Answer 39

1. Finding is by chance;
2. Finder is not co-owner of the property where it is found;
3. Finder is not trespasser;
4. Finder is not an agent of landowner;
5. Finder is not owner of the land, building, or other property

Question 40

When does the State have the right to acquire hidden treasure?

Answer 40

If the things found may be of interest to science or the arts, the State has a right to acquire them at their just price, which shall be divided in conformity with the rule stated. [Art. 438, CC]

Question 41

Re hidden treasure, what is the role of a usufructuary?

Answer 41

Stranger

For purposes of hidden treasure, a usufructuary is considered a stranger to property; naked owner gets owner’s share (Art. 566, CC).

Question 42

What are the classification of property based on the Constitution?

Answer 42

[Sec. 3, Art. XII]

1. Public Agricultural Land;
2. Mineral Land;
3. Timber Land;
4. National Parks.